Prime Minister Stephen Harper signed off on a loan guarantee Friday that’s expected to save Newfoundland and Labrador and Nova Scotia more than $1 billion in borrowing costs on the $7.4-billion Muskrat Falls venture in Labrador.

The federal support is included in a term sheet that would guarantee up to $6.3 billion in debt over 35 to 40 years for the financing of the project.

The St. John’s, N.L., lawyers known as Group 2041, says Nova Scotia private utility Emera (TSX:EMA) has until July 2014 to decide whether it will build the Maritime Link portion of the project.

The group is expressing concern that a loan guarantee may fall apart if Emera decides not to build the 180-kilometre subsea link that would transmit the power from Cape Ray in southwestern Newfoundland to Lingan, N.S., in Cape Breton.

Group 2041 wants the term sheet released immediately and adds there is still time for Newfoundland and Labrador Premier Kathy Dunderdale to commit to a full regulatory review of the project.